The New Year Starts Off With Mortgage Rates Below Last Year’s Average

A new year has brought good news for the housing industry. The first week reported that the average U.S. fixed rate for a 30-year fixed mortgage averaged at a low 3.72%. The findings were 80 basis points below data reported a week earlier.

George Ratiu, Realtor.com’s chief economist said, “The conventional 30-year loan slid 2 basis points to 3.72% in the first week of 2020. Rates remain about 80 basis points lower than the first week of

2019.”

Ratiu predicts that employment and wage gains will fuel the housing industry. The economy will maintain a moderate growth trajectory this year.

The 15-year FRM also was at a low 3.16% which was down from this time last year’s reportings of 3.99%. The average rate dropped in just one week from 3.19% to 3.16%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage also averaged 3.46% which was lower than the 3.98% reported this time last year.

“As mortgage rates remain favorable, buyers are likely to get a head start on the spring shopping season in the first couple of months of this year,” Ratiu said. “A stronger infusion of new homes in affordable price ranges would be a welcome gift for the New Year.”

Sam Khater, Freddie Mac’s chief economist, believes the rates have maintained around 3.7% for the last couple of months because of ” the combination of improved economic data and market sentiment has led to stability in mortgage rates.”

“The low mortgage rate environment combined with the red-hot labor market is setting the stage for a continued rise in home sales and home prices,” said Sam Khater.

Click Here For the Source of the Information.

The Nation’s Housing Market To Boost 2020 Economy

Good news for the new year in the nation’s economy sector. According to CNN Business, the housing market is thriving and will continue to thrive into the new year boosting the economy in 2020.

Although the housing market is just a small factor in the boost, it still is important for the economy as a whole. Purchasing a home is one of the most important and largest purchase decisions one can

make. Consumer spending makes up approximately two-thirds of US economic growth.

“The housing market is probably going to be a modest tailwind to the economy,” David Berson, chief economist at Nationwide, told CNN Business.

Catalyst for the boost in the housing market stems from low mortgage rates, a strong labor market with rages that are rising and low unemployment rates.

Mortgage rates  are at a three-year low and home loans are very affordable. The Federal Reserve says it will keep rates on hold for the time being which stands at about 3.96% to 4.01%.

The central bank cut interest rates three times in 2019. The cut makes the adjustable-rate mortgages cheaper according to Lawrence Yun, chief economist at the National Association of Realtors.

The US Labor Department reports the 21st straight month that the unemployment rates have been at or below 4%.

They also reported that wages are up 3.1% over the last year. On average, annual wages have increased 3% or greater every month since the summer of 2018. Unemployment is down near a 50-year low.

The National Association of Home Builders and Wells Fargo reported a 20-year high this December in the Housing Market index. In fact, the Housing Market Index did not even reach this high pre -2008 mortgage crisis.

Click Here For the Source of the Information.